Palm is known to be working on at least two new devices – Palm Mansion and PalmPad – that are likely to be launched early next year. While not much information is available about these devices as yet, there was word last month that suggested that the Palm Mansion could be a fully touchscreen device with 800 x 480 WVGA display.

Now, we have heard from one of our close source that Palm is working on a smartphone that will have a display slightly bigger than 5″. While we have been unable to confirm if this is indeed the rumored Mansion, the chances for this are pretty bright taking the possible launch date into consideration. Our source has confirmed that the launch shall happen in three months time. That’s towards the end of Q1 2011.

I am still trying to gather more details about this new phone and will keep you posted about this.